H clause_15 Jan.pdf

H.XXX Contingency/Wartime Mail Surge Operations

1. Purpose:

This clause establishes the exclusive mechanism for the government to activate and pay for mail handling services under CLINs 0003, 1003, 2003, 3003 and 4003. These CLINs are intended to address unforeseen, large-scale increases in mail volume that significantly exceed the established baseline, caused specifically by a declared "Contingency Surge Event." It is not intended to cover predictable volume fluctuations, such as the peak holiday season (PWS 4.1.4) or routine military exercises, which must be accounted for in the firm-fixed-pricing of the primary service CLINs.

2. Definitions:

For the purposes of this clause, the following definitions apply:

a. Baseline Volume: 800,000 kilograms of mail processed by the Contractor in a single calendar month.

b. Contingency Surge Event: An unforeseen event that meets both of the following criteria:

(1) Qualifying Event: The event must be one of the following:

(i) A formal declaration of a national or international emergency, or a significant military operation by the U.S. Government or NATO, that directly impacts mail flow through the USAFE-AFAFRICA Area of Responsibility (AOR).

(ii) A complete and unforeseen closure of a key transportation hub (e.g., Frankfurt International Airport) that directly disrupts mail transport for a period reasonably expected to exceed 30 consecutive days.

(iii) A documented, unforeseen surge of military personnel into the AOR, not part of a scheduled rotation, that is projected to increase mail volume by more than 25%.

(iv) A natural disaster that directly and demonstrably disrupts normal mail processing and transportation patterns.

(2) Direct Impact: The Qualifying Event must be the direct cause of a projected exceedance of the Baseline Volume.

3. Process for Activation:

Payment under the Contingency Surge CLIN shall be authorized only after the following three-step process is completed:

a. Step 1: Contractor Request for Determination. The Contractor shall monitor its daily mail volume. If processing data indicates the total volume for the current month is projected to exceed the Baseline Volume, the Contractor shall submit a formal written "Request for Determination" to the Contracting Officer’s Representative (COR). This request shall include:

(1) The projected total monthly volume and the methodology used for the projection.

(2) All available supporting data (e.g., daily AMPS data, DD Forms 1372, etc.).

b. Step 2: Government Review and Recommendation. The submission of a Contractor Request for Determination will initiate a formal government review. The COR will:

(1) Validate the Contractor's volume projection using government data sources.

(2) Determine the root cause of the volume surge. This determination will be based on information provided by the U.S. Postal Service (USPS), as only they have the authority and system-wide data to assess transportation and network impacts.

(3) Provide a formal recommendation to the Contracting Officer (CO), including the validated volume projection and the determined cause.

c. Step 3: Contracting Officer Authorization. The Contracting Officer (CO) has the sole authority to determine if a "Contingency Surge Event" has occurred based on the projected need. If the CO determines the criteria are met, the CO will issue a formal, written authorization to the Contractor. This written authorization from the CO is the only document that activates the Surge CLIN. The authorization is valid only for the calendar month specified in the notice and permits the Contractor to bill for excess volume incurred during that month.

4. Payment

a. Payment Mechanism: Upon receipt of the CO's written authorization, the Contractor is authorized to bill for services under CLIN 0003, 1003, 2003, 3003, and 4003.

b. Rate and Calculation: Payment will be made at the firm-fixed-price of $[Insert Proposed Price] per kilogram. This rate applies only to the number of kilograms processed in excess of the 800,000 kg Baseline Volume for that authorized month.

c. Calculation of Payment: Based on final, end-of-month data, the government will calculate payment using the following formula. The calculation applies only if the "Total Verified Monthly Volume" for the authorized month exceeds the 800,000 kg Baseline Volume.

Payment = (Total Verified Monthly Volume – 800,000 kg) x (Firm-Fixed-Price per Kilogram)

Example:

Projected Overage for authorization: 150,000 kg

Final Verified Monthly Volume for authorized month: 945,000 kg

Baseline Volume: 800,000 kg

Firm-Fixed-Price per Kilogram: $0.05

Calculation: (945,000 kg - 800,000 kg) = 145,000 billable kg

Total Payment under CLIN: 145,000 kg * $0.05/kg = $7,250.00

If the Total Verified Monthly Volume is less than or equal to the Baseline Volume, no payment will be made under this CLIN for that month.

d. Invoicing: For the Contractor to receive payment, the Contractor's invoice shall include a copy of the CO's written authorization for that month and the verified volume data (e.g., PS Forms 2942-A, DD Forms 1372, AMPS data) supporting the invoiced amount.

e. Contract Ceiling: The total cumulative payments made under the Surge CLIN shall not exceed the ceiling price established in the contract schedule without a formal modification signed by the CO.